Management Glossary

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dependent demand

Demand for an item that is used to make some other item(s). The demand for the component is, therefore, dependent on demand for the item(s) of which it is a component. There might be instances where an item is used both on its own and as a component in another product. Only the demand for the item as a component would be counted as dependent demand.

Contributed by: Managerwise Staff
See: independent demand

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